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Ethical Comparison of 24 Hour Fitness and YMCA Essay.

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It is an ethical comparison of issues with two company. YMCA and 24
Hour fitness, non-profit versus profit companies.

Here’s a snippet of the essay.

Corporate ethics is a major subject of discussion among business elites. To delve into this topic, this ethical comparison paper compares two companies’ within the fitness industry, but taking different business operation models. One of the companies is for-profit, while the other company is a non-profit organization. 24 Hour Fitness USA Inc. is the for-profit company, while the YMCA of America is the non-profit company. The ethical dilemmas in both companies will be reviewed, and philosophical theories such as deontology, utilitarianism, moral relativism, and egoism will be used to analyze each situation.

Company profile

For-Profit – 24 hour fitness (Frantz, 2005)

Mission Statement. Helping people improve their lives through fitness.

Values Statement. Committed to being a good neighbor in its communities via charitable and in–kind donations to groups focused on both helping Americans get healthy and improving youth fitness.

The 24 hour fitness is a personal fitness membership club considered one of the largest in the world. In the US only, the company owns over 425 health clubs and has 1800 employees. The company has employed customer service employees in Las Vegas, Philippines and Nevada. The company’s corporate office is situated in San Ramon, California and owns a processing center in Carlsbad, California. It is approximated to have over 3 million members and more than 420 health clubs in a total of 18 states and also in Asia. 24 hour fitness as the name suggests, remains open 24 hours a day, seven days a week (24 Hour Fitness Website).

24 hour fitness was established in 1983 by Mark S. Mastrov and started off with a single fitness club. The company expanded over the years to over 400 clubs in 18 western US states. It was sold to a private-equity firm based in New York known as Fortsmann Little & Company in 2005. The CEO of the company is Elizabeth Blair who succeeded Carl Liebert III. It plays a part in Olympic sponsorship and the Best Loser television show (BBB Website).

The company specializes in the area of personal fitness. It mainly deals with the sale of physical fitness memberships and branded products. 24 hour fitness operates five club types namely Ultra sport, Super sport, Sport, Active and Express. It gets its funds mainly from membership dues. The company is approximated to have over 20,000 employees in total. It provides services on the basis of membership and is also known to provide sponsorships for the Olympics and the Best Loser Television show.

The fitness centers industry has a large number of small competitors with companies controlling no more than five percent of the market share (Bates, 2008). 24 hour fitness is part of the industry and therefore has to strive to achieve the limited market share. The company so far has achieved to gain a large percentage of the market share compared to other companies with its close competitor being Bally Total Fitness Holding. 24 hour fitness is affected by the high bargaining power of buyers in the industry and tries to combat this by offering long-term memberships. The industry faces high price competition especially because services offered are almost similar thus most companies turn to offering lower prices for a bigger market share. 24 hour fitness has differentiated its services and expanded internationally in order to survive the competition. The competitive advantage of 24 hour fitness remains to be creative marketing and strong leadership (Weber, 2014).